PRIME MINISTER Datuk Seri Anwar Ibrahim has announced a further RM5 billion allocation under the Syarikat Jaminan Pembiayaan Perniagaan (SJPP), bringing the total government-backed financing guarantee facility to RM10 billion, in a move aimed at strengthening Malaysia’s micro, small and medium enterprises (SMEs) amid mounting economic pressure linked to the West Asia crisis.
Anwar, who is also Finance Minister, said the enhanced facility is intended to stimulate economic activity while serving as a targeted support mechanism for smaller businesses and vulnerable income groups affected by global uncertainty.
“This is to help drive growth and act as a catalyst for companies in need.
“This assistance must involve smaller companies and groups such as agriculture, smallholders, fishermen, and petty traders operating stalls and small restaurants,” Bernama reported him saying at a press conference following a roundtable session with 20 representatives from financial institutions at Sasana Kijang.
He said the expanded scheme is designed to ease financing constraints faced by SMEs in sectors most exposed to external shocks, including construction, agriculture and agri-food, logistics and transport, as well as tourism, all of which are sensitive to fluctuations in global energy prices and geopolitical tensions.
Under the revised framework, financing coverage will be increased to as much as 80 per cent, up from 70 per cent previously, with the guarantee tenure extended to up to 10 years.
Anwar said the additional RM5 billion allocation builds on an earlier announcement and forms part of the government’s broader strategy to cushion the domestic economy from disruptions linked to energy market volatility and ongoing conflict in West Asia.
He reiterated that government support must remain targeted and efficient, ensuring assistance reaches those most affected rather than being broadly distributed.
The roundtable meeting with financial institutions also underscored the government’s emphasis on maintaining financial system stability, with Bank Negara Malaysia and domestic banks playing a central role in sustaining credit flow and supporting economic resilience during periods of global uncertainty. - April 21, 2026
